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Carnival
was “negligent and in breach of its duty of care” in how it dealt with a Covid-19 outbreak on a cruise at the beginning of the pandemic, an Australian court ruled.
The cruise operator was ordered to pay medical expenses to a passenger who contracted Covid aboard a cruise of the Ruby Princess, operated by Carnival’s Princess Cruises, and led a class-action lawsuit against the company.
CarnivalCorp.
stock (ticker: CCL) was 0.7% lower shortly after the open on Wednesday, while its London-listed Carnival PLC stock was 1.1% down.
The Ruby Princess left Sydney on March 8, 2020, with more than 2,600 passengers on board for a 13-day cruise to parts of New Zealand. Hundreds of passengers developed Covid and more than two dozen died, according to an inquiry commissioned by the government of New South Wales.
A previous voyage on the ship, which ended earlier on March 8, had been hit by an outbreak of acute respiratory infection and influenza-like illness, Justice Angus Stewart said in an online summary.
Stewart concluded that Carnival “knew or ought to have known about the heightened risk of coronavirus infection on the vessel, and its potentially lethal consequences.” A reasonable person in Carnival’s position would have canceled the voyage, he said.
Stewart added that Carnival made “misleading” representations that it was reasonably safe for passengers to embark on the cruise, and that they would implement increased monitoring, screening and sanitation protocols.
Carnival Australia didn’t immediately respond to an email seeking comment after business hours local time on Wednesday. A Carnival Australia spokesperson said the company had seen the judgment and was considering it, The Wall Street Journal reported. “The pandemic was a difficult time in Australia’s history, and we understand how heartbreaking it was for those affected,” the company said.
The company was ordered to pay the plaintiff 4,423 Australian dollars (US$2,805) for out-of-pocket medical expenses, but the judge declined to award damages. The passenger had sought more than A$360,000 for personal injuries, distress, and disappointment, because her husband spent nearly two months in hospital.
Given that more than 600 people on board are believed to have caught Covid, a ruling for damages could have opened the door for more claims. As it is, the impact could still swell. Lawyers leading the class action called on Carnival to compensate all the passengers.
The order to pay medical costs is unlikely to send shock waves through the sector, but the ruling does leave Carnival exposed to further litigation, particularly from those aboard the Ruby Princess.
Write to Callum Keown at [email protected]
Read the full article here
